2023S0004-1 11/30/22     By: Perry S.J.R. No. 27       A JOINT RESOLUTION   proposing a constitutional amendment creating the Texas   Connectivity Fund for the development of broadband and other   telecommunications services in all areas of the state and   authorizing the appropriation to that fund of a portion of revenue   received from the existing state sales and use taxes on   telecommunications services while not increasing the rate of the   sales and use taxes.          BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Article III, Texas Constitution, is amended by   adding Section 68 to read as follows:          Sec. 68.  (a)  In this section:                (1)  "Commission" means the Public Utility Commission   of Texas or its successor.                (2)  "Comptroller" means the comptroller of public   accounts of the State of Texas.                (3)  "Fund" means the Texas Connectivity Fund.          (b)  The Texas Connectivity Fund is created in the state   treasury and shall be administered by the comptroller as a   revolving fund to provide a method of funding for the development of   telecommunications services, including the construction,   reconstruction, and expansion of telecommunications infrastructure   and services, and the operation of existing telecommunications   infrastructure and services as determined by the comptroller and   the commission in accordance with standards and procedures   established by law.          (c)  Money in the fund may also be used in conjunction with   other funds in accordance with the procedures, standards, and   limitations established by federal law and the laws of this state.          (d)  Money dedicated as provided by this section is   appropriated when received by the state, shall be deposited to the   credit of the fund, and may be used as provided by this section and   any laws enacted under this section without further appropriation.          (e)  Unless authorized to continue by a two-thirds vote of   the members elected to each house, this section expires on   September 1, 2035.          SECTION 2.  Article VIII, Texas Constitution, is amended by   adding Section 7-e to read as follows:          Sec. 7-e.  (a)  Subject to Subsection (b) of this section,   for each state fiscal year, 50 percent of the net revenue received   from the collection of any state taxes imposed on the sale, use, or   other consumption in this state of telecommunications services that   were subject to taxation on January 1, 2023, under Chapter 151, Tax   Code, is automatically appropriated to the Texas Connectivity Fund.   The legislature by general law may provide limitations on the use of   money appropriated under this subsection, with priority given to   funds required by the universal service fund or its successor.          (b)  The legislature by adoption of a resolution approved by   a record vote of two-thirds of the members of each house may direct   the comptroller to reduce the amount of money appropriated to the   Texas Connectivity Fund. The comptroller may be directed to make   that reduction only:                (1)  in the state fiscal year in which the resolution is   adopted, or in either of the following two state fiscal years; and                (2)  by an amount that does not result in a reduction of   more than 50 percent of the amount that would otherwise be   appropriated to the Texas Connectivity Fund in the affected state   fiscal year under Subsection (a) of this section.          (c)  Money appropriated to the Texas Connectivity Fund under   Subsection (a) of this section may not be considered available for   certification by the comptroller under Section 49a(b), Article III,   of this constitution.          (d)  In this section, "telecommunications services" means   the electronic or electrical transmission, conveyance, routing, or   reception of sounds, signals, data, or information utilizing wires,   cable, radio waves, microwaves, satellites, fiber optics, or any   other method now in existence or that may be devised, including   long-distance telephone service.  The term does not include:                (1)  the storage of data or information for subsequent   retrieval or the processing, or reception and processing, of data   or information intended to change its form or content;                (2)  the sale or use of a telephone prepaid calling   card;                (3)  Internet access service; or                (4)  the portion of the sales price of a pay telephone   coin sent-paid telephone call that is paid by coin.          (e)  Unless authorized to continue by a two-thirds vote of   the members elected to each house, this section expires on   September 1, 2035.          SECTION 3.  The following temporary provision is added to   the Texas Constitution:          TEMPORARY PROVISION. (a)  This temporary provision applies   to the constitutional amendment proposed by the 88th Legislature,   Regular Session, 2023, dedicating a portion of the revenue received   from the existing state sales and use taxes that are imposed on   telecommunications services to the Texas Connectivity Fund to   provide funding for the development of broadband and other   telecommunications services in all areas of the state while not   increasing the rate of the state sales and use taxes.          (b)  Section 68, Article III, of this constitution takes   effect September 1, 2025.          (c)  Section 7-e, Article VIII, of this constitution takes   effect September 1, 2025, and applies only to state tax revenue   collected on or after that date.          (d)  This temporary provision expires January 1, 2026.          SECTION 4.  This proposed constitutional amendment shall be   submitted to the voters at an election to be held November 7, 2023.   The ballot shall be printed to provide for voting for or against the   proposition: "The constitutional amendment creating the Texas   Connectivity Fund for the development of broadband and other   telecommunications services in all areas of the state and   authorizing the appropriation to that fund of a portion of revenue   received from the existing state sales and use taxes on   telecommunications services while not increasing the rate of the   sales and use taxes."